Nestle Nigeria Plc 2017 Financial Year End Result summary

12 Months Report NESTLE NIGERIA PLC
	2017 N'000	2016 N'000	change	Year End
Revenue	244,151,411	181,910,977	34%	December
Profit before taxation	46,828,682	21,548,408	117%
Profit for the period	33,723,730	7,923,968	326%
Issued Shares (Units)	792,656,252	792,656,252
Basic Earnings Per Shares (Kobo)	4,255.00	1,000.00	326%
Last total dividend paid (Kobo)	2,500.00	1,900.00	32%

Nestle Nigeria had a  a stable 2017 compared to 2016 financial year. This resulted in a sterling performance that even prompted the payment of N15.00 interim dividend to affirm the performance.

A quick look at the Quarter on quarter performance by the Company:

Q1: 61,151,517,000

Q2: 60,768,219,000

Q3: 63,322,714,000

Q4: 58,908,961,000

The company maintained an average of N61,037,852,750 in terms of revenue through out 2017 against the fact that the country actually came out of recession at the end of Q2 2017.

PAT

Q1: 8,358,827,000

Q2: 8,189,159,000

Q3: 6,432,004,000

Q4: 10,743,740,000

The Company maintained an average of N8,430,932,500 throughout 2017. This was an outstanding result coming from the company compare to last year. We can only hope such performance can be repeated going forward.

The only thing that can make the repeat of such performance possible are some of the following things the company is already doing:

Local sourcing of raw materials like soya bean, maize, cocoa, Palm Olein and sorghum.

Innovation that is the introduction of Naija Pot Maggi variant we expect more going forward.

Controlling Cost:

The Net finance cost declined by 46.78% from N16.6billion in 2016 to 8.8billion in 2017.

Reduction in loan and borrowing and trade and other receivables which contributed significantly to the reduction in current liability by 34.17% from N121billion in 2016 to N79.6 billion in 2017.

The company spread her customer base such that none of the contributes up to 10% of total revenue. This is important as no customer can hold the company ransom. 

The Nigerian Market still remains the Company's biggest market as it contributed a whopping 98.76% of the total revenue. The implication is that the company can open up her export market as it is increasing her local capacity through her continuous investment.

The company successfully kept personnel cost low even in a period of rising cost. However we expect this to increase significantly going forward,

The stability in the Forex Market of the country had a significant effect on the company has it saved about   31.48% on this head. Forex loss improved from N16.2billion in 2016 to N11.1billion in 2017.

The price of the stock on the Exchange remains relatively stable compared to some of the results that had been released so far. This may not be far from the fact the the shareholding structure of the company is closely held by two entities. Nestle International and Stanbic IBTC nominee who held 66.18% and 9.5% respectively.

Corporate Action Announcement

Proposed Dividend: N27.50K

Qualification Date: 4th May 2018

Closure of Register: 7th to 11th May 2018

AGM: 22nd May 2018

Payment Date: 23rd May 2018

Venue: Muson Center Onikan Lagos